LPG supply crunch hit restaurants threatening closures

Mumbai: For restaurants across the country, it is not business as usual–a severe crunch of LPG supplies on the back of the West Asia war is posing a threat of temporary closures with many firms having moved to induction cookers to stay afloat and some of them also restricting menu choices. Smaller establishments are already in dire straits. In Chennai, for instance, several small eateries have shut shops, Ravi Muthukrishnan, chairman, Vasanta Bhavan Hotels and president, Channel Hotels Association told TOI. From Chinese to biryani, a lot of items require slow cooking which means more usage of gas–agencies which supply LPG cylinders to restaurants have said that they do not have enough stock of commercial gas cylinders. “LPG cylinders have not been available since the past two days,” said Muthukrishnan.

Anjan Chatterjee, founder of Speciality Restaurants which owns brands such as Mainland China and Oh! Calcutta said that Bengaluru and Chennai have been the most impacted markets for the company with certain parts of Delhi and Kolkata also facing supply disruption. For now, the firm is somehow making do with inductions and rice cookers but if the supplies don’t become adequately available in a day or two, restaurants will have to be shut, said Chatterjee. “About 70% of my food is Chinese. For that, we need high pressure gas burners. No gas, no cooking,” Chatterjee said.




Companies fear that dwindling business will put pressure on cash flows at a time when

final advance tax payments and liquor license renewals are due. “We are assessing all possible options to keep the business floating. Our rents won’t be waived off, salaries, final advance tax payments and liquor license renewals need to be done. Restaurants operate on the basis of monthly cash flows,” said Pawan Shahri, co-founder at Mumbai-based Chrome Asia Hospitality which owns brands such as Gigi and Donna Deli. Debaditya Chaudhury, MD at Chowman said that its restaurants in Mumbai and Bengaluru have started facing supply challenges. This is a concern for restaurant operations which rely heavily on commercial LPG for daily kitchen functioning, said Chaudhury, adding that the firm will look at restricting certain menu items if the situation further escalates.

Restaurateur Pranav Rungta which runs outlets in Mumbai said that his Colaba eatery Otoki has stopped non-essential cooking through LPG cylinders. Bulk rice cooking and meals for staff have all moved to electric cookers, said Rungta. “The available commercial LPG cylinders are first being provided to establishments such as schools and hospitals,” said Rudra Pratap, COO at Ahuja Residences which operates boutique business hotels across cities which is reducing menu choices. “The biggest relief is that the major wedding season is behind us,” said Pratap.